NASD Says Instant Messages Must Be Saved

[Dave Farber <dave () farber net>]

NASD Says Instant Messages Must Be Saved

June 18, 2003
By THE ASSOCIATED PRESS




 

Filed at 3:38 p.m. ET

WASHINGTON (AP) -- The National Association of Securities
Dealers Wednesday told its member firms they must save
instant messages for at least three years.

``NASD recognizes that instant messaging is becoming
increasingly popular as a real-time method of communicating
and we want to be clear about our expectations for its
use,'' said NASD Vice Chairman and President of Regulatory
Policy and Oversight Mary L. Schapiro.

The Wall Street self-regulatory organization said the
instant messages also can't violate NASD rules governing
sales literature and correspondence.

NASD's announcement affects about 5,300 brokerage firms.
Federal law requires virtually every securities firm doing
business with the U.S. public to become a member of NASD.

On Monday, the New York Stock Exchange officially told its
336 member firms that instant messages must be saved.

About 18 months ago, instant messaging was introduced to
Wall Street and has spread quickly through the heavily
regulated industry.

Traders use the instant messaging tool to swap news and
price data, discuss strategy and confer with groups in
other departments and firms.

Brokerages are already required to save e-mails, and e-mail
evidence has figured prominently in several investigations
of their conduct. 

http://www.nytimes.com/aponline/technology/AP-NASD-Instant-Messages.html?ex=
1056966085&ei=1&en=93f2c7a65c23f569


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